Super Retail Group saw “record” online and digital sales and plans to invest an additional $12 million in customer retention capabilities.
In its 2022 annual results, the company announced that its online and digital sales grew 44% year-on-year to $601 million, or 17% of total sales.
Group CEO and Managing Director Anthony Heraghty said the “record sales” result demonstrated that “SRG’s retail execution continues to improve, and we are capturing and expanding our digital market share. “.
SRG, which owns brands such as Boating Camping Fishing (BCF), Macpac, Rebel and Supercheap Auto, also saw a 73% increase in click-and-collect sales, reaching $332 million.
“Since fiscal 2019, online sales have tripled and their share of overall sales has increased from 7% to 17%,” Heraghty said.
“Click-and-collect, which leverages the strength of our store network, continues to grow and outpace home delivery.
“In FY22 click and click accounted for 55% of total online sales and 9% of total sales.
“The importance of our national in-store footprint is underscored by the fact that despite the FY22 pandemic, over 90% of our sales were made in-store, whether through in-store sales or click-and-collect.”
Heraghty said investment in SRG’s order management system “continues to reap benefits in terms of fewer split deliveries, which adds to the profitability of home delivery sales.”
He added that the company is “investing an additional $12 million in retention and customer retention capability.”
“This investment will help redesign our loyalty programs and grow our customer analytics that enable companies to provide increasingly personalized offers to our customers, using data and analytical insights.”
Super Retail Group is looking to better leverage the data of its 9.2 million active club members by developing a loyalty and personalization program.
“This program of work is well underway and its fruits are already being seen in the acceleration of club growth over the past 12 months, particularly within Supercheap Auto,” said Heraghty.
“Going forward, the group will launch new loyalty programs for Rebel, Supercheap Auto and BCF, which will allow the company to focus on growing annual customer value by driving visits and transaction value.
“At the same time, the group will continue to invest in advanced analytical capabilities.
“Our first use cases in personalized one-to-one promotions. The algorithm is built and the testing and learning phase is well underway.
“In short, encouraging 9.2 million customers to visit that visit one more time or buy that item one more time generates a material benefit and that is the primary goal of the program.”
Heraghty added that Super Retail Group aims to achieve a capital expenditure of $125 million over the next year as it continues to advance its investments in omnichannel and digital capabilities, as well as store development.
The retailer has already set aside $25 million in enterprise costs and $19 million in capital expenditures on personalization and loyalty capability.
Its total capital expenditures in the past fiscal year included $65.9 million spent on omni-retail, loyalty and personalization, and IT projects, partly reflecting investment in its loyalty goals and of personalization.
Another $58.8 million of its capital expenditures went towards new stores and renovation programs.
The company posted revenue of $3.55 billion, up 2.8% for the year.
It also reported statutory net profit after tax of $241.2 million and normalized net profit after tax of $244.1 million.